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Resolute Forest (RFP) to Shut Down Paper Machine in Catawba
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Resolute Forest Products Inc. recently announced that it would be shutting down a paper machine at its plant in Catawba, S.C. The move is likely to be completed by Jun 30, and will result in the layoff of approximately 180 workers.
Headquartered in Canada, the company operates in the forest products industry in U.S, Mexico, Brazil, and internationally.It operates through five segments namely, Market Pulp, Tissue, Wood Products, Newsprint, and Specialty Papers. The company also produces electricity at seven cogeneration facilities and seven hydroelectric dams.
The company’s decision to shut down the machine at its pulp and paper mill was driven by the continuing market decline and price erosion for lightweight coated paper grades. This step follows considerable capital investments and initiatives to cut the machine's operating costs.
Per management, the plant will continue operating another paper machine, which is said to be one of the largest coated mechanical paper machines in North America. This machine will produce lower-cost, high-quality paper for domestic and international customers. In addition to this machine, a pulp dryer at the mill also will remain operational.
The layoff will likely help the company lower its operational expenses, which would help boost its income, going forward. The company has outperformed the Zacks categorized Paper and Related Products industry in the last three months with an average return of 1.1% compared with a 0.5% gain for the latter.
Per a market research conducted by Zion Market Research, the global paper packaging material market was valued at around $286.61 billion in 2015 and is likely to reach $362.65 billion by 2021, growing at a CAGR of 4.4% between 2016 and 2021. This restructuring initiative is likely to have a positive impact on the company as it will be able to focus on its core operations, going forward.
Stocks to Consider
Some of the company’s peers in the same industry include Sappi Limited (SPPJY - Free Report) , International Paper Company (IP - Free Report) and Stora Enso Oyj (SEOAY - Free Report) .
Sappi Limited has a long-term earnings growth expectation of 3.65%. It is currently trading at a PE of 11.46x.
International Paper has a long-term earnings growth expectation of 11.33%. It is currently trading at a PE of 14.67x.
Stora Enso Oyj has a long-term earnings growth expectation of 3%. It is currently trading at a PE of 15.56x.
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With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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Resolute Forest (RFP) to Shut Down Paper Machine in Catawba
Resolute Forest Products Inc. recently announced that it would be shutting down a paper machine at its plant in Catawba, S.C. The move is likely to be completed by Jun 30, and will result in the layoff of approximately 180 workers.
Headquartered in Canada, the company operates in the forest products industry in U.S, Mexico, Brazil, and internationally.It operates through five segments namely, Market Pulp, Tissue, Wood Products, Newsprint, and Specialty Papers. The company also produces electricity at seven cogeneration facilities and seven hydroelectric dams.
The company’s decision to shut down the machine at its pulp and paper mill was driven by the continuing market decline and price erosion for lightweight coated paper grades. This step follows considerable capital investments and initiatives to cut the machine's operating costs.
Per management, the plant will continue operating another paper machine, which is said to be one of the largest coated mechanical paper machines in North America. This machine will produce lower-cost, high-quality paper for domestic and international customers. In addition to this machine, a pulp dryer at the mill also will remain operational.
The layoff will likely help the company lower its operational expenses, which would help boost its income, going forward. The company has outperformed the Zacks categorized Paper and Related Products industry in the last three months with an average return of 1.1% compared with a 0.5% gain for the latter.
Per a market research conducted by Zion Market Research, the global paper packaging material market was valued at around $286.61 billion in 2015 and is likely to reach $362.65 billion by 2021, growing at a CAGR of 4.4% between 2016 and 2021. This restructuring initiative is likely to have a positive impact on the company as it will be able to focus on its core operations, going forward.
Stocks to Consider
Some of the company’s peers in the same industry include Sappi Limited (SPPJY - Free Report) , International Paper Company (IP - Free Report) and Stora Enso Oyj (SEOAY - Free Report) .
Sappi Limited has a long-term earnings growth expectation of 3.65%. It is currently trading at a PE of 11.46x.
International Paper has a long-term earnings growth expectation of 11.33%. It is currently trading at a PE of 14.67x.
Stora Enso Oyj has a long-term earnings growth expectation of 3%. It is currently trading at a PE of 15.56x.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
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